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Pipeline Integrity Reviews - APipeline Integrity Reviews A Holistic Approach

Phil Hopkins

Andrew Palmer & Associates, UKP t f P LtdPart of Penspen Ltdemail [email protected]

Paper presented at:

Pi li Pi i I t it A t d R iAPA

© Penspen Ltd

Pipeline Pigging, Integrity Assessment and Repair Conference. February 2001, Houston.

Presentation Structure Background to paper ChangeChange Safety of Ageing Pipelines Move to Risk Management Move to Risk Management Pipeline Integrity Reviews and Their Benefits

Conducting a Pipeline Integrity Review (PIR)g p g y ( ) Fitness for purpose Risk analysis Wh h ld d t PIR Who should conduct a PIR Pipeline Management Systems

Ten key considerations for all pipeline Ten key considerations for all pipeline engineers when considering your pipeline’s safety and integrity

Background

Backgroundhe USA pipeline industry is about to commence integrity anagement programs, encouraged by regulations. The core of ese programs will be detailed reviews of pipeline integrityndrew Palmer & Associates have been conducting integrity reviews aseline assessments) for clients worldwide: UK - uprating of 25 year old systemp g y y Asia - assess safety & rerating of 40 year old pipeline Africa - third party commercial reasons General - pipeline management systemsGeneral pipeline management systemse’ve learnt that: Not sufficient just to look at ‘integrity’ Not sufficient to focus on the pipeline alone Not sufficient to focus on the pipeline alone You must look at the whole pipeline system, as all aspects contribute

to safety - a ‘holistic’ approach. You must have a pipeline management system You must have a pipeline management system e’d like to share our experiences/expertise with you, as you start

omplying with the ‘final rule’ and using API 1160

Backgroundou will be needing to thoroughly review your integrity in USAou may call this review a ‘baseline’ assessment, andou may call the overall framework ‘integrity management’ andou may call the overall framework integrity management andou may call you integrity assessments or the procedure for btaining a plan to reduce risk ‘direct assessment’,

t ll thi i d t d i th Pi li I t it R iut all this is accommodated in the Pipeline Integrity Review.he major difference is that the Pipeline Integrity Review is xplicitly...

HOLISTICHOLISTIC

Change

Change in our world… the family.The whole world is changing, not just the pipeline business. Consider the effects of technology on our

Central Heating - we no longer need to sit

business. Consider the effects of technology on our family:Central Heating we no longer need to sit together for warmth

Microwave cookers - we no longer have to sit Microwave cookers - we no longer have to sit together for eating

Electronic games - we no longer have to sit Electronic games - we no longer have to sit together to play

Cell phones we no longer have to be Cell phones - we no longer have to be together at all!

Change in people….

e aree are ng. very morning I k in the mirrork in the mirror, I think I look ter. Sadly, I’m ling myself….ling myself…. onsider how mour is nging fornging… for mple in a

mb squad….

Change in pipeline construction… little change.LD NEW

Remember… Pipeline Engineers are like surgeons…

Change in pipeline testing….We have seen major changes in testing our lines.From limited gas testing, to high level water testing (1960s) toto low resolution smart pig inspection (1970s) to

hi h l ti t ihigh resolution smart pig inspection (1980s)

Pipeline Safety

Pipeline safety… recent USA failures

Images taken f O Sfrom OPS website: ops.gov.com

Pipeline safety… not confined to USA

taken ers e

Pipeline failures… why?CAUSES US

GASEUROPEAN

GASCANADA

GASUSOIL

EUROPEANOIL

HUNGARIANOIL & GAS

THIRD PARTY 40.4 28.2 12.6 21.5 47.5 56.5

CORROSION 20.4 15.7 11.6 21.7 27.7 17.6

ATERIAL ANDONSTRUCTION

DEFECT12.7 9.5 34.3 11.5 23.4 12.9

RATIONAL ERROR 26.4 46.5 41.5 45.4 4.3 12.9

You MUST have an holistic approach to integrity to prevent all

DENTS/ 1000 M YR 0.26 1.85 2.93 1.33 0.83 4.03

You MUST have an holistic approach to integrity, to prevent all these failures, ANDSmart pigging, risk management programmes, correct routeing

Pipeline safety… why are we having ‘more’ failures?Our pipelines are getting older, and we expect the same/more performance.

But we still treat them the same…?But we still treat them the same…?This cannot be a decision from an engineer!

USA system oldest in the worldIf it’s going to happen, it will happen here first….g g pp , pp

More buildings/activities around pipelines; increased consequences We are increasingly treating engineering as a ‘commodity’

Commodities (e.g. sugar) are price-driven, and not perceived as complicated or having variable quality

This may be true of, e.g. linepipe, in our industryBut it is not true of anything related to safety and environment

Some of our operators have downsizedlosing the ‘grey hairs’,under-strength or under-trained or ‘under-experienced’, and

l i ‘ t ’ d i i bj ti itlosing ‘corporate memory’, and engineering objectivity.Our regulators are under pressure to reduce size… the ‘more for less’ pressure is on our civil services

Safety of Ageing Pipelines

ood maintenance and management of ageing pipelines allows them be operated safely for many years. FAILURES NEED NOT HAPPEN!p y y y

0 .1 6o rro s io n S p ills /yea r/1 0 0 0 k m

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Change in approach to pipeline safety….Old Style… Reactive… from failure to failure….

L i l ti

lureLegislation

and/or Pipeline

Don’t update

PlanNo

Failure

Act and/or Failure

N St l P ti f il hil h

Integrity Review

PlanFailurePlan

New Style… Proactive… no failure philosophy

Pipeline Integrity Review

Pipeline Management

System

NoFailure

Noure Plan

ReviewSystem

Change to Risk Management

Change to Risk Management - ‘Proactive’he change to ‘proactive’ safety requires formal identification nd management of risk. This is an international movement: USA Office of Pipeline Safety has a risk demonstration

programme, and see risk management as a potential method of producing equal or greater levels of safety in a more cost effective manner that the current regulatoryregime

UK Pipelines Safety Regulations:UK Pipelines Safety Regulations: Goal-setting, not prescriptive The Regulations require a ‘major accident prevention document’,

including safety management systemincluding safety management system. Canada has non-mandatory ‘Guidelines for Risk Analysis of

Pipelines’ in its pipeline code. The European Commission is reviewing ‘major accident’

pipelines, and are likely to require operators to have a ‘major accident prevention policy and a pipeline management system

Pipeline Integrity Reviews

Pipeline Integrity Reviews

IN THE USA YOU WILL HAVE:‘FINAL RULE’ + API 1160 = INTEGRITY MANAGEMENT‘FINAL RULE’ + API 1160 = INTEGRITY MANAGEMENTThis can be simply represented by:

Pipeline integrity review

++

Pipeline management system

=

Integrity management

The Need For Pipeline Integrity Reviews,

There are six main reasons why an operator

and Their Benefits

There are six main reasons why an operator may need to review the integrity of a pipeline: C ti i f t it d li Continuing safety, security and compliance. Cost effectiveness. Poor documentation Poor documentation. Change or extension of use. Revalidation. Revalidation. Change of ownership or third party access.

The Need For Pipeline Integrity Reviews,and Their Benefits

The benefits of conducting an integrity reviewThe benefits of conducting an integrity review nclude:

Compliance with regulations Factual demonstration to all stakeholders of pipeline safety

and corporate commitment to safetyp y Pipeline health check. Confirmation of safe operating limits. Independent review of design and operation. Identify and justify any requirement for remedial action. Identify any weaknesses in management procedures Identify any weaknesses in management procedures.

Conducting a Pipeline Integrity Review

A Pipeline integrity review is a review of a pipeline system that, as a minimum, includes analysis of:, y

The pipeline’s design, construction and commissioning, Pipeline route and hazards (e.g. proximity of housing, subsidencep ( g p y g

areas or seabed profile), Operating history, practices and management, Current condition via inspection records failures downtime etc Current condition via inspection records, failures, downtime, etc., Practices for inspection and maintenance of the pipelines, Hydraulic/compression, including delivery forecasts and expansion

plans, Product quality; both current and future quality is considered, Safety and environmental procedures and systems Safety and environmental procedures and systems, The critical parts of the pipeline system (pipelines, SCADA

systems gas conditioning stations valve stations pig

Pipeline Integrity Review - Execution planITEM DESCRIPTION

1. PIR Objective, Scope and Overview ofProgramme.

i. Descriptions, andii. Timetable

i Offi S t U (if d d)

2. Overview of Activities

i. Office Set Up (if needed),ii. Mobilisation of Review Teams,iii. Kick-Off Meetings/Documentation Review,iv. Data Gathering and Analysis by Discipline (Item 4),v. Integrity and Risk Review (Item 5),vi Reporting with Corrective Actionsvi. Reporting, with Corrective Actions.

3. Activity Schedule

i. Pre-Data Gathering Reviews,ii. Data Analysis & Report Preparation,iii. Review Report Submission,iv. Clarification Meetings on Draft Review Report,

Fi l R t d C ti A ti R tv. Final Report and Corrective Actions Report.

4. Scope of Data Gathering Activities by Discipline(many disciplines may be needed during the

i. Process,ii. Mechanical,iii. Electrical,iv. Instrumentation/Control,

( )(many disciplines may be needed during thereview) v. Risk and Integrity (Item 5),

vi. Pipeline Engineering,vii. Cathodic Protection,viii. Safety and Environment.

5. Pipeline Fitness for Purpose and Risk Review i. See Section 4.3.4.p p

6 Additional Information Required from Integrity

i. CVs of Key Personnel,ii. Organigram,iii. HSE Plan,

Fitness for Purpose and Risk Review

One part of the Pipeline Integrity Review is the FFP and Risk Review This is a major topic ofFFP and Risk Review. This is a major topic of this conference, so it is worthy of mention.These reviews will:

Contribute to the overall expert opinion on the integrity ofpipeline system

These reviews will:

pipeline system. Identify critical sections of the pipeline system (e.g. in

terms of security of supply). Assess the remnant life of the pipeline, and its ability to

withstand either its existing duty, or change of duty. Provide a review of the risks associated with the pipeline inp p

both its current and future condition.

Fitness for Purpose and Risk Review

The ‘fitness for purpose’ review will usually focus on anydefects (e.g. corrosion) or damage (e.g. dents)recorded/anticipated in the pipeline, as these will be the resultsof the major hazards to the pipeline (e.g. mechanical damage, or

)deteriorating coating). This review will help us determine thePROBABILITY (LIKELIHOOD) of a failure; however, this reviewdoes not take account of the CONSEQUENCES of any failure.

The ‘risk’ review will take account consequences, as: RISK = PROBABILITY OF FAILURE x CONSEQUENCES OF

FAILURE But don’t forget, we also need to take account ‘GAIN’. We

balance our risk with our gain. This is controversial and usuallyavoided in public, but ESSENTIAL.p ,

Why? Because it is often the operator who gains by increasingrisks, and the public who loses.

Fitness for purpose assessment of defectsness for Purpose - defect assessment.

is is a mature subject and you can assess existing defects, you can uate future defect occurrence and growth using these methods.

u can also determine when to repair defects, which pig to use, how n, and whether you need to hydrotest or not.n, and whether you need to hydrotest or not.

tend my rse if yout t fi d

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DESIGN PRESSURE (72 percent SMYS)

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HYDROTEST PRESSURE (100 percent SMYS)B

A PIG INSPECTION LEVELS

Risk Assessments

isk Assessment is essential, and you have many risk ssessments methods and packages to choose fromssessments methods and packages to choose from. ere’s one:

PipelineI f tiInformation

Internal CorrosionExternal Corrosion

FatigueStress Corrosion Cracking

Mechanical Damage

Risk to LifeDamage to Property

Loss of ServiceMechanical Damage

Loss of Ground SupportThird Party Intervention

Cost of FailureEnvironmental Effects

Probability of Failure Relative Risk Consequences of Failure

PRIORITY RATING

Results of a risk assessment

esults from part of a Qualitative Risk Assessment

70

80 Main Pipe Sections - Current Operating Pressure Section 1Section 2Section 3Section 4Section 5

50

60

40

20

30

10

Some Decisions made in a PIR

Outcome of FFP and Risk Assessment may include recommendations for:include recommendations for:

Smart pigging Smart pigging, Hydrotesting, Critical point inspection, Critical point inspection, Cathodic protection testing, Repair methods,p Other rehabilitation methods.

Note that the results of the risk review are important but theNote that the results of the risk review are important, but the most important feature of the risk review is the PROCESS we go through in identifying risks and understanding our pipeline

Who should conducting a PIR?

The review should be conducted by an organisation that can offer the following skills:organisation that can offer the following skills: Independence Design construction and commissioning of Design, construction and commissioning of

above and below ground plant (or offshore and subsea plant if appropriate),

Operation, inspection and maintenance of pipeline systems,

Communications and instrumentation Communications and instrumentation, Defect assessment, repair and rehabilitation, Risk and safety assessments, Risk and safety assessments, Management consultancy,

T h i l dit

A Pipeline Integrity Review ReportThe integrity review report should include: An overall view of pipeline system condition: An overall view of pipeline system condition:

Wellheads / above ground installations Pipeline Cathodic protection Controls Associated facilities Associated facilities Operation and Maintenance

Recommendations on: Modification and Repair Inspection Future operation

An appraisal of management system and procedures

Pipeline Management System*

Pipeline Management System

Pipeline integrity review

++

Pi li t tPipeline management system

=

Integrity managementIntegrity management

Management System - Generic

Policydevelopment

Policyp

O i i Organisationaldevelopment

Organising

Auditing Planning and Implementing

Developingtechniques of

planning,Measuring P f measuring and

reviewingPerformance

Pipeline Integrity/Risk Management System

Policydevelopment

PolicyIntegrity or Risk Management

p

O i i Organisationaldevelopment

Organising

Auditing Planning and Implementing

Developingtechniques of

planning,Measuring P f measuring and

reviewingPerformance

Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safetyg y p g y y

Changing to a safer pipeline….g g p p


ey Consideration 1 Change Requires Newey Consideration 1. Change Requires New nking

‘The significant problems we face, cannot be solved at the same level of thinking we were whenof thinking we were when we created them’.

Einstein 1879-1955


ey Consideration 2 Change Will be Resisted

‘There is nothing more difficult to

ey Consideration 2. Change Will be Resisted

There is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than the creation of a newthan the creation of a new system.

For the initiator has the enmity ofFor the initiator has the enmity of all who would profit by preservation of the old i tit ti d l l kinstitutions, and merely luke warm defenders in those who h ld i b th ’

Machiavelli 1469-1527


ey Consideration 3 Corporate Culture

In pipeline operation our maintenance costs are minor

ey Consideration 3. Corporate Culture

In pipeline operation, our maintenance costs are minor ompared to our corporate overhead.It is a fact that large organisations operating pipelines willIt is a fact that large organisations operating pipelines will ut costs on maintaining their pipelines, but let junior xecutives travel over the world in business class, or waste me on meetings that all participants know are a waste of me. Th i b th t f d t t i th iThese companies are both out of date, not serving their usiness goals, and creating imbalances between the


ey Consideration 4 Selecting the lowest bidn’t let you Contract/Finance Department select pipeline contracts or ces. Why not?a trained monkey can select the smallest of three objects

ey Consideration 4. Selecting the lowest bid

a trained monkey can select the smallest of three objectsan engineer can select the safest and beste have advice against selecting the lowest bid from Ruskin, 1819-0:

‘It is unwise to pay too much but it is worse to pay too little. When you pay too much you lose a little money… that is all. When you pay

li l i l hi b h hitoo little you sometimes lose everything because the thing you bought was incapable of doing the things it was bought to do.The common law of business balance prohibits paying a little and getting a lot it cannot be done If you deal with the lowest bidder itgetting a lot… it cannot be done. If you deal with the lowest bidder it is well to add something for the risk you run.And if you do that, you will have enough to pay for something


ey Consideration 4 Selecting the lowest bidey Consideration 4. Selecting the lowest bid nt.)

‘Low bidders and “can-do” type of guys kill people’


ey Consideration 5 Do not do the ‘minimum’ey Consideration 5. Do not do the minimum ected or required

des. Regulations, etc., are minimum requirementsm to do more than your peers - it makes sense...

If you do only one thing more than your peers his/herIf you do only one thing more than your peers, his/her pipeline will probably fail firstYou’ll learn from their experience, and act accordingly, so it doesn’t happen to youThey will then copy your practices, butYou will then move one step ahead againYou will then move one step ahead again…And then their pipeline will fail before yours again!


ey Consideration 6 Think Holistic Solutionsey Consideration 6. Think Holistic Solutions

ipeline Integrity Management must consider aspects of our pipeline system as it is an

d h ll l ffegrated process, where all elements affect fety.’

We must apply holistic solutions


ey Consideration 7 ‘Calculations are notey Consideration 7. Calculations are not gineering’

hey do convey the thought process and design intent.he quality, etc. of calculations indicates the level of care and gence; calculations substantiategence; calculations substantiate,t do not substitute for judgement.

he use of canned calculations and design approaches without derstanding their application & limitations, is beneath an i ’ t d d f ’ineer’s standard of care.’


ey Consideration 8 Managementey Consideration 8. Management

Smart pigging, risk management programmes, rrect routeing etc., will help you achieve high egrity…

but only good management will GUARANTEE y g gegrity


ey Consideration 9 Murphy’s Law

MURPHY'S UNIVERSAL LAW:If thi it ill

ey Consideration 9. Murphy s Law

If anything can go wrong, it will.

MURPHY'S COROLLARIES:N 1 L f h l hi d f b dNo. 1 - Left to themselves, things tend to go from bad to

worse. No. 2 - It is impossible to make anything foolproof p y g pbecause fools are so ingenious.

MURPHY'S CONSTANT:Matter will be damaged in direct proportion to its value.

QUANTIZED REVISION OF MURPHY'S LAW


ey Consideration 10 Don’t Get it Wrong!ey Consideration 10. Don t Get it Wrong!

are in a litigious y today… we

utnumbered… t get it wrong!!!!!is USA data…

ers in USA now mber engineers cientists ned….

CONCLUSIONSIntegrity Reviews can be conducted on pipelines in a ystematic manner. They provide:y y

Pipeline ‘health’ check, Independent review of design and operation, Confirmation of existing safety and safe operating limits, Confirmation of compliance, and ability to be

uprated/reused/sold, etc., Opportunity to undertake remedial action before operational

or design discrepancies develop, Confirmation of future safety and security of supply to all Confirmation of future safety and security of supply to all

stakeholders.You must adopt a ‘holistic’ approach, taking account of all the ngineering associated with the pipeline systemThe resulting integrity plan must be adopted within a

ABOUT THE LECTURE & LECTURER lecture, and associated paper, was presented at:The Pipeline Pigging, Integrity Assessment and Repair Conference. February 2001 H C f P di f Cl i P H T2001, Houston. Conference Proceedings from Clarion Press, Houston, Tx.hil Hopkins is a Director of Penspen Ltd., UK, the international pipeline eering company, and was previously Managing Director of Andrew Palmer and ciates UK a company of specialist pipeline engineersciates, UK, a company of specialist pipeline engineers.has over 20 years experience in all aspects of pipeline engineering, integrity and gement consultancy and has presented many keynote papers and lectures at

national conferencesnational conferences.technical and management training courses and lectures are presented all over orld; additionally he presents lectures and courses on ‘Change’*, for all levels of from Executives to Administration.u require this lecture (in 1,2 or 3 hour format) or any of his training courses, ct either: Dr Phil Hopkins, Penspen APA, 4, Amethyst Road, Newcastle Business Park,Dr Phil Hopkins, Penspen APA, 4, Amethyst Road, Newcastle Business Park, Newcastle upon Tyne, NE4 7YL, UK,Tel 44 (0) 191 273 2430, Fax 44 (0) 191 273 2405, email [email protected]

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